Check out the F&O trends in select stocks such as RIL, SAIL, ITC, McLeod Russel and Bata India with Chetan Jain, Deputy Manager -Derivatives Desk, Anand Rath:
SmartInvestor:After a range bound session in early trades markets seem to have picked up steam and the Nifty has been hovering near 7,300 levels as of now. Maximum Call OI is seen in 7,400 and 7,500 while Put OI seen in 7,000 and 7,100. What is your call on the Nifty for May options?
Chetan Jain:Nifty future after a recent run up till the major event of elections result had entered into consolidation phase with moving a range bound mode. However some selective stocks from midcap and small cap basket are witnessing momentum, traders are advised to be stock specific before markets starts its next phase of rally. Looking at the option data for May series maximum call OI is placed at 7400 & 7500 strike prices whereas maximum put OI is seen at 7000 strike price suggesting next major resistance is seen at 7500-7550 area. Traders can simply go with plain vanilla 7400 call at declines around @35 sl 15 tgt 75.
SmartInvestor:Reliance Ind has been trading firm since early trades and is active in the options segment. What is your strategy for the stock for May options?
Chetan Jain:Reliance had been consolidat in between 1090-1130 levels sicne last four consecutiv e trading sessions after such a strong momentum. overall trend is positive till the time it is holding well above 1070 levels. however entering at higher levels does not favour with risk reward hence traders can play the upside momentum with buying naked 1120 call@15 and target of 45-50 levels in htis expiry.
SmartInvestor:SAIL is also witnessing action in the options segment today. The PSU metal major has been firming up from Rs 70 levels. What is your strategy for May options?
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